Samuel Githuka Njenga & 2 others v Naleye Enterprises Limited & another [2020] eKLR Case Summary

Court
Environment and Land Court at Nairobi
Category
Civil
Judge(s)
Hon. S. Okong’o
Judgment Date
October 01, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Samuel Githuka Njenga & 2 others v Naleye Enterprises Limited & another [2020] eKLR. Delve into the essential legal points and implications of this significant judgment.

Case Brief: Samuel Githuka Njenga & 2 others v Naleye Enterprises Limited & another [2020] eKLR

1. Case Information:
- Name of the Case: Samuel Githuka Njenga & Others v. Naleye Enterprises Limited & Others
- Case Number: ELC Suit No. 17 of 2017(O.S)
- Court: Environment and Land Court at Nairobi
- Date Delivered: 1st October 2020
- Category of Law: Civil
- Judge(s): Hon. S. Okong’o
- Country: Kenya

2. Questions Presented:
The central legal issues presented before the court include:
1. Whether the respondents are obligated to render an account of the funds payable to the applicants under the agreement of sale.
2. Whether the respondents should pay the remaining balance of Kshs. 21,700,000/- to the applicants as stipulated in the agreement.

3. Facts of the Case:
The applicants, who are trustees of KANU Mathare Ward, entered into a sale agreement on 3rd June 2016 with the 1st respondent, Naleye Enterprises Limited, for the sale of several parcels of land (L.R No. 219/167-173) for Kshs. 50,000,000/-. The agreement stipulated that the properties were sold in vacant possession, despite being occupied by squatters, and included provisions for payment and eviction of these squatters. The applicants were to receive Kshs. 25,000,000/- directly, with various payment milestones linked to the eviction process. However, the applicants failed to remove the squatters, leading the 1st respondent to undertake the eviction themselves, raising questions about the remaining funds due to the applicants.

4. Procedural History:
The applicants filed an Originating Summons on 11th January 2017, seeking an account of the funds and the remaining balance due under the sale agreement. The respondents opposed the summons, claiming that the applicants had previously filed a related suit which had been settled, and that they had provided all necessary accounts. The court directed that the matter be heard through written submissions; however, when the case was called for confirmation of submissions, the respondents opted to rely solely on their affidavit.

5. Analysis:
Rules:
The court considered Order 37, Rule 3 of the Civil Procedure Rules, which allows vendors or purchasers of immovable property to seek an account for any claims arising from a contract of sale.

Case Law:
The court referenced previous rulings on similar contractual obligations where vendors or purchasers were required to provide detailed accounts of transactions related to property sales. These cases emphasized the necessity for transparency and accountability in financial dealings.

Application:
The court applied the rules to the facts, noting the clear obligation of the 1st respondent to account for the Kshs. 21,700,000/- balance after the initial payment of Kshs. 3,300,000/-. The court found that the 1st respondent had failed to satisfactorily demonstrate how the funds were utilized in the eviction process, thereby ruling in favor of the applicants.

6. Conclusion:
The court ruled that the 1st respondent must provide a detailed statement of account for the Kshs. 21,700,000/- within 30 days and pay any amount found due thereafter. The court determined that each party would bear its own costs, emphasizing the 1st respondent's accountability in financial matters.

7. Dissent:
There were no dissenting opinions noted in this case, as the judgment was delivered by a single judge.

8. Summary:
The Environment and Land Court ruled in favor of the applicants, ordering the 1st respondent to furnish a detailed account of the remaining funds due under the sale agreement and to pay any outstanding amounts found due. This case underscores the importance of accountability in real estate transactions, particularly regarding financial dealings and obligations to provide transparent accounts.

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